Who must approve the goods or services that an Alloy franchisee offers?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You are restricted by the Franchise Agreement, the Manual and any other practice or custom with respect to the goods or services which you may offer, which must be approved by us.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 50–51)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy must approve the goods or services that a franchisee offers. The franchisee is restricted by the Franchise Agreement, the Manual, and any other practice or custom with respect to the goods or services offered, and these offerings must be approved by Alloy.
Alloy maintains control over the products and services offered to ensure a consistent brand experience. Franchisees must only sell or offer products and services that Alloy has approved in writing. Moreover, Alloy can mandate that franchisees sell all types of products and services that Alloy specifies. Alloy also retains the right to disapprove any products or services at any time, and franchisees must immediately cease selling those items.
This level of control extends to the modification of standards and specifications, which also requires Alloy's prior written consent. While franchisees generally have the right to set their own prices, Alloy reserves the right to suggest prices and can modify the system to establish both minimum and maximum prices for training and related services. Alloy can also supplement, improve, or modify the System periodically, requiring franchisees to comply with these changes, including offering new or different products or services as specified by Alloy.
These stipulations ensure that Alloy maintains uniformity and quality across all franchise locations. For a prospective franchisee, this means limited autonomy in selecting which products and services to offer, as well as adherence to Alloy's standards and potential price controls. It is important for potential franchisees to understand these restrictions and how they align with their business goals and operational preferences.